Thursday, October 18, 2012

Spending your money on maintenance is always wiser than buying a policy
that kicks in only when something breaks. Here are a few hitches that
can make a home warranty more trouble than it’s worth:

The plan doesn’t cover everything in your house. Faucets and
outdoor sprinklers, for example, usually are not covered, and you’ll
probably have to pay extra if you want your refrigerator, washer/dryer
and garage-door opener included in the package. Likewise, your pool and
hot tub are extra. Tip: If you buy a home warranty, know what’s covered and what isn’t.

Pre-existing problems are not covered, even if you don’t know
about them. Among the most common homeowner complaints about home
warranties is that the plans too often decline to pay claims, claiming
the appliance or system had the glitch before the homeowner got into the
program. In fact, those who have complained say the more expensive the
repair, the more likely they were to be told the problem was
pre-existing. Tip: Insist that the warranty company inspect
your appliances and HVAC system and notify you in writing of any
pre-existing conditions, before you pay your annual fee. Chances are,
the company won’t agree to do it. If that’s the case, you can hire a
home inspector, but that will cost you as much as your warranty.